This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0358 - Exempts from sales and use tax sales machines and parts used in coin-operated amusement and vending businesses
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 1495-01
BILL NO.: SB 358
SUBJECT: Taxation and Revenue-Sales and Use: Entertainment, Sports and Amusements
TYPE: Original
DATE: March 2, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| State Sales Tax Funds | (Over $1,000,000) | (Over $1,000,000) | (Over $1,000,000) |
| Total Estimated
Net Effect on All State Funds |
(Expected to exceed $1,000,000) | (Expected to exceed $1,000,000) | (Expected to exceed $1,000,000) |
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Local Government | (Over $350,000) | (Over $350,000) | (Over $350,000) |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Revenue (DOR) state this legislation exempts the sale of vending machines and coin operated amusement devices and their related parts. DOR staff state this proposal would not fiscally impact their agency. DOR staff state the revenue impact of this proposal is unknown.
Oversight estimates the revenue loss from this proposal would exceed $1 million annually for state funds and approximately $350,000 for local funds. This estimate is based on one distributor of vending machines stating that they pay approximately $360,000 in sales tax annually.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| STATE SALES TAX FUNDS | |||
| Sales tax exemption for | |||
| vending machines and parts | (Over | (Over | (Over$1,000,000)$1,000,000)$1,000,000) |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| Loss to Political Subdivisions | |||
| Sales tax exemption for | |||
| vending machines and parts | (Over | (Over | (Over$350,000)$350,000)$350,000) |
| FISCAL IMPACT - Small Business | |||
| Small businesses would be expected to be fiscally impacted to the extent that they pay sales tax on taxable items. The exemption from state and local sales tax would cause small businesses to pay less for such items. | |||
DESCRIPTION
This act exempts from sales and use tax sales of machines and parts used in commercial, coin-operated amusement and vending businesses if sales tax is paid on the gross receipts
from the machines.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Revenue
Jeanne Jarrett, CPA
Director
March 2, 1999